Which Activity Is Most Likely to Create a Positive Externality

question 89

Multiple Choice

Which activity is most likely to create a positive externality?

• A) You drive downtown each day.
• B) An oil refinery operates for 16 hours each day.
• C) A new airport is built in a big city.
• D) A person receives a flu shot.
• E) The government offers reduced-cost financing toward the purchase of a new car.

---

Definitions:

Unemployment Insurance

A government-provided insurance that offers financial assistance to individuals who have lost their jobs through no fault of their own.

Food Stamps

A government assistance program that provides low-income individuals and families with a means to purchase food.

Temporary Aid

Financial or material assistance provided on a short-term basis to support individuals in times of crisis or immediate need.

Medicare

A federal health insurance program in the United States primarily for people age 65 and older, but also available for certain younger people with disabilities.